Oando Energy Resources acquires ConocoPhillips

Oando Energy Resources (OER), a subsidiary of Oando Plc, has acquired ConocoPhillips, a foreign oil company exploring and producing oil and gas in Nigeria.

Oando made the disclosure in Lagos in a late night statement signed by Mr Kevin Johnson-Azuara, the company spokesman.

According to OER, ConocoPhillips (COP) has received initial deposit of 435 million dollars (N67.73 bln) to acquire the assets of COP.

The News Agency of Nigeria (NAN) quotes OER as saying that the entire acquisition was estimated to cost 1.22 billion dollars (N189.95bln).

“To conclude the deal, OER has also received commitment letters valued at 815 million dollars of bank credit facilities.

It said that 465 million dollars was drawn from reserve based lending facility, internationally placed and led by BNP Paribas, Standard Bank, and Standard Chartered Bank.

COP said that additional 350 million dollars was a secured loan jointly arranged locally in Nigeria by FBN Capital and FCMB Capital Markets.

Mr Pade Durotoye, Chief Executive Officer of Oando Energy Resources, was quoted as saying that “maximising value for our shareholders is our ultimate goal”.

“Through optimal financing, we remain determined to conclude the COP acquisition as soon as possible and increase our market share and infrastructure within the sector.

“Once the deal is concluded, OER’s daily production will substantially increase from 4,500 bpd to 45,000 bpd and will place the company as the largest indigenous producer behind the International Oil Companies.

“The acquisition also paves the way for other indigenous companies to address operational boundaries within Nigeria and position themselves as global players, thus providing unprecedented opportunities for local and international investors,” he said” (NAN)